With the recent emphasis on environmental protection, electric vehicles (EVs) have gained popularity in regions such as Europe, America, China, and Australia; due to their `zero tail-pipe emission' and low maintenance cost. This paper aims to investigate the feasibility of introducing EVs into the Brunei market using life cycle cost analysis, as well as identify dominant factors that influence its feasibility. Although local data have been used, methodologies adopted in this paper are applicable and directly transferable for analysis of other markets. Our analysis has shown that EV is currently still expensive as compared to the Internal Combustion Engine Vehicles (ICEVs) and Hybrid Electric Vehicles (HEVs) in the market; with its acquisition cost, contributing much to its Life Cycle Cost (LCC). In order to promote EVs and make other types of vehicles less desirable, it is proposed that a direct government subsidy be introduced as well as the current gasoline price to be increased. It has been shown that the initial subsidy of USD$4100 and increasing gasoline price to USD$0.70/litre, would allow EVs to compete comfortably in the market. This subsidy can be gradually reduced with time, as EV becomes cheaper due to the expected reduction in battery price. Environmentally, however, the current greenhouse gas (GHG) emissions from EVs turn out higher than ICEVs, considering the energy chain. In this regard, cleaner renewable energy sources need to be considered and improvement in power plant efficiency needs to be made, to make EVs more environmentally competitive to conventional vehicles. In conclusion, the government needs to look into financial incentives such as subsidy and increasing gasoline price to improve the feasibility of EVs in the market, as well as to improve efficiency of the energy generation and transmission to derive the full benefit of EVs.